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Will Iran's red tape thwart post-sanctions boom?

Amid the imminent lifting of sanctions, Iran's complicated licensing and permit regulations continue to deter investment — despite the Rouhani administration's efforts.
An Iranian customer speaks with a bank clerk at the Export Development Bank of Iran in the capital Tehran on July 27, 2015. Iran's central bank chief said that Iran has assets of $29 billion in overseas banks that could be unlocked under a nuclear deal struck on July 14, far less than reported estimates of over $100 billion. AFP PHOTO / BEHROUZ MEHRI        (Photo credit should read BEHROUZ MEHRI/AFP/Getty Images)

TEHRAN, Iran — Reform of Iran’s cumbersome permit system has come under the spotlight in recent months. Yet, efforts to minimize the number of licensing documents required for doing business in various sectors of the economy have made slow progress due to resistance from state organizations, among other reasons.

An investor may need to obtain several permits, intermediate approvals, consents and authorizations — out of 2,000 listed ones — from different organizations to start business activity in the country. This complicated bureaucracy consumes considerable time and energy. In its latest effort to address this matter, the administration of President Hassan Rouhani gathered local business officials and experts for a conference in Tehran on Dec. 14. Addressing the one-day event, Minister of Economic Affairs and Finance Ali Tayebnia said his colleagues are working hard to improve the business environment in the post-sanctions era. Indeed, the latter is a prerequisite for the economy to achieve its ambitious medium-term growth targets.

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